Seeking Alpha

EPA sets renewable fuel targets

  • The EPA formally tells refiners to blend 16.55B gallons of renewable fuels to blend into the U.S. gasoline supply this year, and pares some targets the oil industry had criticized as too ambitious.
  • Refiners must blend 1.28B gal. of biomass-based diesel and 2.75B gal. of advanced biofuels this year, along with 6M gal. of cellulosic biofuels made from non-edible plant parts - far less than the 14M target the EPA proposed in February but short of the oil industry’s push for the category to be zeroed out completely.
  • After some initial reaction, most related stocks have returned to pre-announcement levels: PBF +8.6%, VLO +3.3%, HFC +2%, BIOF +1.8%, PEIX -4%, GPRE -3.2%, REX -6.6%, SYNM -4.3%, REGI -0.3%.
Comments (6)
  • cwebjohn
    , contributor
    Comments (124) | Send Message
     
    No wonder PBF and VLO rallied today.
    6 Aug 2013, 01:09 PM Reply Like
  • youngman442002
    , contributor
    Comments (5131) | Send Message
     
    and why energy costs are high....
    6 Aug 2013, 01:19 PM Reply Like
  • stocknerd
    , contributor
    Comments (1275) | Send Message
     
    Energy costs are NOT high. why do Americans think they have a birthright to cheap gasoline. The price of crude is NOT regulated by the USA. Please travel to Europe and fill it up and then post please.
    6 Aug 2013, 04:04 PM Reply Like
  • Chris Damas
    , contributor
    Comments (1354) | Send Message
     
    It appears the policy was mainly for cellulosic biofuels and did not touch the 13.8 billion gallon ethanol requirement. That's why the stocks have not moved more.
    6 Aug 2013, 03:14 PM Reply Like
  • cwebjohn
    , contributor
    Comments (124) | Send Message
     
    Instead of a 9% gain you were wishing for 20% or more?
    6 Aug 2013, 03:31 PM Reply Like
  • Chris Damas
    , contributor
    Comments (1354) | Send Message
     
    which one move 9%? Only PBF.
    6 Aug 2013, 03:33 PM Reply Like
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